Egypt implements new direct debit system for subsidized bakeries

Egypt's Ministry of Supply and Internal Trade is implementing a new direct debit system for subsidized bakeries to enhance financial governance and efficiency through electronic linking between stakeholders. Ahmed Abu al-Gheit, Assistant Minister of Supply for Oversight, stated that the system aims to simplify procedures, accelerate financial settlements, and protect public funds.

While the ministry reports that the system has been operating regularly at a 75% success rate since its implementation in early August, bakery owners have raised concerns regarding technical challenges. Reported issues include difficulties with bank withdrawals and ATM transactions, as well as logistical hurdles related to flour supplies from mills.

To address these challenges, the ministry has established a 24-hour operations room to monitor feedback and resolve individual cases. Bakery owners have suggested implementing direct clearing between the state and mills to bypass certain financial cycles and have requested grace periods to adjust to the new regulations.